Buying a home in Honolulu might seem overwhelming. When I speak with first time homebuyers, many will say they don’t have the down payment. That’s understandable since prices are higher in Honolulu than some other cities across the country.
If you’re thinking of purchasing your first home, you should start planning now. The idea is to give yourself at least two to three years to save for your down payment.
When you create your savings plan, it’s important to have measurable milestones. The simplest way of having more money is to save more than you spend. That’s easier said than done for most people. Just remember to think small and think easy. If you’re used to eating out five nights a week, start cutting back on that. If you travel two to three times a year, maybe opt for a staycaction instead. If you have the energy to work a part time job, you should consider that too. Small changes can go a long way.
Let’s say you’re looking to purchase a $350,000 condo. 10% down is $35,000. That’s $17,500 each year for two years. I won’t be surprised if this is a lot more doable than you thought.